Biotech concerns Precipio Inc (NASDAQ:PRPO) and Aptinyx Inc (NASDAQ:APTX) scored new analyst ratings today, with the brokerage firms expecting big moves for the penny stocks. Both equities have struggled so far in 2019, but their new price targets suggest Wall Street is rolling the dice on a comeback.

Alliance Global Partners launched coverage of PRPO stock with a "buy" rating and $6.30 price target -- more than double the equity's current price. The analysts said Precipio “has staked out a unique position within hematological cancer diagnostics,” and expects the stock to "generate rapid growth over the next several years." In addition, Alliance Global believes PRPO "will attract additional investor and research attention" as the company executes its business plan.

PRPO shares touched an annual high of $10.80 on May 2, but have since surrendered roughly 70% of their value. In fact, the stock's pullback was so steep, Precipio CEO Ilan Danieli issued a letter to shareholders on Monday, June 17, to discuss "the recent pricing pressure." Danieli acknowledged that PRPO has been "under assault by the shorting interests," and reassured shareholders that the firm is not "holding back" company news. Further, the CEO said the "bottom line" is that "nothing has changed" regarding Precipio's product pipeline, and it remains "in a position to create long-term value" for PRPO shareholders.

Despite the letter, the stock continued its retreat, and is now close to filling an early April bull gap. The security is also now trading south of its 80-day moving average -- a trendline that put a cap on rebound attempts earlier this year. At last check, PRPO is down 3.8% to trade at $3.00.

Aptinyx stock, meanwhile, scored a fresh "outperform" rating and $12 price target from SVB Leerink -- representing nearly four times yesterday's close of $3.11. APTX shares have struggled since a massive January bear gap, which stemmed from poorly received data on the company's diabetic nerve treatment. The security has subsequently stair-stepped even lower beneath its 30-day moving average, touching a record low of $2.88 on June 7. At last check, APTX is up 4.8% to trade at $3.26.

Despite the stock's struggles in 2019, today's new analyst attention is par for the course. In fact, four of five analysts following the equity maintain "buy" or better opinions, and the consensus 12-month price target rests at a lofty $13.

The S&P hit a new intraday high earlier today as investors digested dovish comments from the Fed. Three individual stocks making notable moves today are drugmakers Edesa Biotech Inc (NASDAQ:EDSA) and DiaMedica Therapeautics Inc (NASDAQ:DMAC), as well as mobile payments processor Net Element Inc (NASDAQ:NETE). Here's a look at what's moving the shares of EDSA, DMAC, and NETE. 

EDSA Stock Doubles on FDA Nod 

Edesa Biotech gained approval from the Food and Drug Administration (FDA) to proceed with a mid-stage study of its EB01 therapy, used to treat patients with chronic allergic contact dermatitis. Edesa plans on enrolling its first patient in the upcoming quarter, and the shares have nearly doubled in response -- up 96.3% at $8.24, pacing for their best day ever. 

In earlier trading, the stock had more than tripled off last night's close, briefly topping the 320-day moving average -- a trendline the security has surged past several times in the past year, but hasn't closed atop since 2014. Earlier this week, the equity bottomed out at a record low of $3.59.

Study Success Stokes DMAC Stock's Red-Hot Rally

The shares of DMAC are are set for their fifth win in six days, after the biotech announced promising early stage trial data for its DM199 drug, used to treat chronic kidney disease. The firm said the drug had no serious side effects, and might be able to restore normal levels of a protein that may be linked to some kidney and heart conditions. The equity hit a six-month high of $5.93 earlier today, and is now trading up 31.2% at $5.01. 

DMAC's announcement has analysts taking notice, with Craig-Hallum lifting its target price to $11 from $9, while maintaining its "buy" rating. Analysts have been fairly bullish on the stock prior to today, though, with all three brokerages dishing out a "buy" or better rating, and a consensus 12-month target price of $8.67, which is a roughly 78% premium to current levels. 

NETE Stock Pops on Crypto Buzz

Online payments concern Net Element just announced today that it would start accepting cryptocurrency payments on its cloud-based software, Aptito. The announcement, which follows the launch of Facebook's Libra cryptocurrency, has NETE stock up 10% at $4.40, eyeing its third straight win. 

Looking at the charts, NETE still has a ways to go. The stock recently bottomed out at eight-month lows, pressured by its 10- and 20-day moving averages. While the equity has broken out above these trendlines in today's bull gap, it's still 23% below its year-to-date breakeven mark.

While some shorts took profits during NETE's recent slide to new lows, there are still 349,140 shares dedicated to these bearish bets. This represents a healthy 10.2% of the stock's available float, or 10.2 times the average daily pace of trading.

Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is moving lower this morning, last seen down 0.9% at $317.63, even after the drugmaker revealed positive topline results from a Phase 2 study of its IL-33 antibody in asthma, being developed with Sanofi (SNY). Specifically, the antibody met its main goal of improving of asthma control and its secondary endpoint of improving lung function.

Cantor Fitzgerald was quick to weigh in, reiterating its "neutral" rating and $405 price target, saying there are some "important questions that need to be answered about this target beyond the press release." More broadly, 13 firms following Regeneron stock sport tepid "hold" ratings, compared to six carrying a "strong buy" recommendations. Meanwhile, REGN's average 12-month price target of $387.85 is a 21% premium to current levels.

In the options pits, traders have been leaning bearish. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows REGN with a 10-day put/call volume ratio of 1.37, which ranks in the 97th annual percentile. In simpler terms, puts have been purchased over calls at a faster-than-usual clip.

Following a long-term downtrend on the charts, Regeneron stock bottomed at $295.27 in early June. The shares have climbed off this level, and peaked above their 50-day moving average yesterday for the first time since early April. However, the stock has not closed above this trendline since mid-March, and remains 15% lower year-to-date.

The shares of Ocular Therapeutix Inc (NASDAQ:OCUL) are making a comeback today, after the drugmaker announced that the Food and Drug Administration (FDA) approved the company's DEXTENZA to treat patients with ocular inflammation following eye surgery. The drug already had approval to treat post-surgery pain in patients. The stock is trading up 2.2% at $4.22 in response. 

This follows yesterday's 7.6% drop, the biggest the equity has seen since its massive sell-off that resulted in an all-time low of $2.35 in mid-May. The equity has rallied hard off this bottom, but ran into pressure at its 200-day moving average. Despite its recent pullback, OCUL has still managed to keep its head above the year-to-date breakeven level.

Analysts have been mostly optimistic, with four "buy" or better ratings on the table, and only one "hold." Plus, the consensus 12-month target price of $9.67 is more than double last night's close. 

Short interest, on the other hand, has risen to an all-time high. During the last two reporting periods these bears tacked on 9.8% to the number of shares sold short. The 9.22 million shares sold short represent an eyebrow-raising 31.7% of the stock's available float, and would take nearly three weeks to buy back, at OCUL's average pace of trading. 

On the other hand, a number of bulls have come on to the options pits. In the past 10 days, 135 calls have been bought for every put on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 90th percentile of its annual range, suggesting a much healthier appetite for calls over puts of late. Looking back at the last two weeks, it appears that a large chunk of this activity occurred at the December 5 call.

After a strong rise up the charts in 2018, Crocs Inc (NASDAQ:CROX) has fallen off a cliff in 2019. More specifically, the shares initially rallied post-earnings in mid-May, rising to around the $31 mark, but it was all downhill from there, diving to the $24 range in the very next session, before hitting fresh lows of $17.53 yesterday. The shares of the footwear concern are trying to make a comeback today thanks to bullish analyst attention, however.

The brokerage firm Baird not only added CROX to its "Fresh Pick" list, but it came in with an upgrade to "outperform" from "neutral" and set a $29 price target on the stock. This has Crocs trading up 7.8% at $19.27, setting it up for its best single session since January and just the second close atop the 10-day moving average since that May earnings release -- though the 20-day is still overhead. Overall, the equity may have been due for a bump on the charts anyway, since its 14-day Relative Strength Index (RSI) fell below 30 yesterday, into oversold territory.

Bullish betting has been popular in the options pits, with the 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) standing at 3.90. This shows almost four long calls crossing for every put, and ranks near the top quartile of the reading's annual range. Peak open interest on the equity sits at the September 20 call. Still, there's plenty of pessimism around Crocs, with almost 10% of the float sold short following a 28.1% increase in the last two reporting periods.

 

The Dow is flirting with a new all-time high today as energy stock Chevron (CVX) surges alongside oil prices. Two stocks also in the spotlight today are e-tailer Overstock.com Inc (NASDAQ:OSTK) and private prison name CoreCivic Inc (NYSE:CXW). Here's a look at what's moving the shares of OSTK and CXW.

OSTK Stock Bounces Back on Blockchain Buzz

OSTK's CEO Patrick Byrne told CNN Business that "two very attractive acquirers" have taken interest in purchasing the company's retail business, as it turns its focus squarely to blockchain. The equity is 12.4% higher at $11.29, pacing for its best day in over a month. 

Today's surge follows a tough month on the charts for OSTK. Recent resistance from the 20-day moving average had the equity hitting a six-year low of $8.96 earlier in the month, followed by even more downward pressure at its 10-day trendline. The equity has managed three straight closes atop both regions this week.

Options bulls are piling on amid the blockchain chatter, with 388,000 calls across the tape so far, 12 times the norm. It looks as if positions are being purchased at the in-the-money June 11 call, which expires later today. Considerable activity is taking place around the July 12.50 call too, indicating that traders are speculating on even more upside for the stock in the weeks ahead.

CXW Stock Plummets on Proposed Private Prison Ban 

Private prison stocks are shrinking back amid Senator and Democratic presidential candidate Elizabeth Warren's proposal to ban privately owned jails and detention centers, including CoreCivic, which has suffered a 6.3% loss to trade at $22.31 so far today. The equity's bear gap follows an eight-month high of $24.38, hit earlier this week, and has the stock pacing for its first close below the 30-day moving average since early April. 

Despite its recent spike, options traders have been picking up bearish positions at a much quicker-than-usual clip. CXW's 10-day put/call volume ratio 0.87 on the the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 74th percentile of its annual range. Adding to this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.19 sits in the 89th percentile of its annual range, indicating that short-term option players have rarely been more put heavy.

Options players are upping the bearish ante today, too. While total volume is relatively light, the 319 put contracts that have exchanged hands so far are three times the expected intraday amount. The most popular put contract is the in-the-money June 23 put.

 

 

It was a triumphant week for stocks, with the Dow within striking distance of new highs, and the S&P 500 hitting a record intraday high. This week's optimism was due, in large part, to dovish comments from Fed Chair Jerome Powell, sending expectations for a July rate cut skyrocketing. The Fed chatter also translated into a historic week for gold prices, and oil prices were back in the headlines, surging after a U.S. drone was allegedly shot down by Iranian operatives.

Pharma Stocks That Saw Red-Hot Rallies 

Several drugmakers staged impressive rallies this week, including ArQule (ARQL) and Incyte (INCY), which took off on upbeat drug data. ContraVir Pharmaceuticals (CTRV) continued a red-hot win streak, too, after revealing impressive NASH drug data, while PhaseBio Pharmaceuticals (PHAS) made a big comeback after the Food and Drug Administration (FDA) granted its antiplatelet drug "breakthrough therapy" status. Meanwhile, analysts expect this pair of penny stocks to double. 

 

4 Crypto Stocks That Caught Investors' Attention 

With the launch of Facebook's (FB) cryptocurrency unveiling, Libra, a number of other e-pay names were capturing Wall Street's attention. Moneygram International (MGI) almost doubled on a blockchain deal with Ripple, and the launch of Libra had Net Element (NETE) kicking up dust too, after the firm said it would start accepting crytopcurrency payments on its cloud-based software. Meanwhile, blockchain rumors sent this retail stock higher on Friday.

China Stocks in the Spotlight 

Chinese e-commerce giant Alibaba (BABA) made news this week on record-breaking sales for its "6.18 Mid-Year Shopping Festival." Plus, several stocks were flashing historically bearish technical signals on the charts. Tech stock Momo (MOMO) ran into a key trendline, per data from Schaeffer's Senior Quantitative Analyst Rocky White, while seasonality suggested a short-term drop for these two China stocks. 

G-20 Meeting, NKE, WBA Earnings on Tap Next Week

With Fed activity in the rear view, investors will turn their attention to next Friday's two-day G-20 summit meeting in Osaka, Japan, in which President Donald Trump and Chinese President Xi Jinping will meet to discuss trade. Ahead of this, however, investors will digest the latest gross domestic product (GDP) estimate report and durable goods orders. On the earnings front, Dow names Nike (NKE) and Walgreens Boots Alliance (WBA) will be in the spotlight, along with Micron (MU) and FedEx (FDX). 

The shares of Deere & Company (NYSE:DE) are up 1.2% in electronic trading this morning, after a big upgrade from Jefferies. The brokerage firm raised its rating on Deere stock to "buy" from "hold," while goosing its price target up to $190 from $150, record-high territory. The analyst in coverage sees higher prices and incomes on the horizon now, thanks to the new farm cycle on deck after a 5-year period of oversupply. Jefferies did also warn that weather and volume issues could serve as near-term headwinds, though. 

After flirting with the $170 level in late April, Deere stock spent the next month reeling from a combination of trade headwinds and post-earnings bear gaps. But since a year-to-date bottom near $132 on May 20, DE has turned in only six negative sessions on its way to five weekly wins. And thanks to today's price action, the shares have now filled the May 6 bear gap that started the freefall.  

For such a volatile stock, it's no surprise that the analyst sentiment is rather mixed. Of the 15 brokerages covering DE, six rate it a "hold" or "strong sell." Plus, the consensus 12-month price target of $163.89 is a discount to Friday's closing perch of $164.28. There's more pessimism elsewhere; short seller ranks have swelled by almost 30% in the two most recent reporting periods, and accounts for four times the average daily trading volume.

Data does suggest it's a good time to speculate on Deere. The equity currently boasts a Schaeffer's Volatility Index (SVI) of 23%, which ranks in the 12th annual percentile, showing relatively muted option premiums at the moment.

Spotify Technology SA (NYSE:SPOT) is trading lower this morning after a bruising bear note from Evercore ISI. The brokerage firm downgraded SPOT stock to "underperform" from "in line," and slashed its price target by $15 to $110 -- a nearly 26% discount to last night's close -- saying it doesn't see any way the music streaming service can meet Wall Street's elevated gross profit estimates.

In reaction, SPOT shares are down 0.6% to trade at $147.40, and could be headed for their first back-to-back losses since mid-June. More broadly, the stock has been rallying since its late-May low near $120, and topped out at a roughly eight-month high of $154.30. Plus, the equity is fresh off a four-week win streak, and is eyeing its first monthly win since February.

Skepticism has been ramping up, with short interest rising 27% in the two most recent reporting periods. Spotify's bearish bandwagon is far from full, though, considering the 4.26 million shares controlled by shorts accounts for just 4% of the stock's available float.

Some of these bears may have initiated an options hedge recently to guard against any additional upside risk. The out-of-the-money July 160 call has seen one of the biggest increases in open interest over the past two weeks, and data from Trade-Alert indicates some of the out-of-the-money calls were bought to open.

Regardless of whether the calls are being used as a hedge or a traditional bullish bet, now is an attractive time to purchase premium on Spotify. The stock's Schaeffer's Volatility Index (SVI) of 34% ranks in the 11th annual percentile, meaning short-term SPOT options are pricing in relatively low volatility expectations.

The shares of Axalta Coating Systems Ltd (NYSE:AXTA) are eyeing their fifth straight win -- the longest the stock has seen in months -- after the coating company announced Chairman Charlie Shaver has resigned. Shaver will be replaced by Mark Garrett, currently the independent presiding director. A Bloomberg report on Saturday suggesting activist investor Jana Partners bought a stake AXTA could be extending the stock's recent rally, too, with the equity last seen up 1.9% at $30.57.

In fact, its current perch marks an nine-month high for the security. Looking back, AXTA just enjoyed a 13.6% surge last week, marking its biggest bull gap since 2017. The stock has since hit a fresh high for the year during each subsequent session, and closed 28% north of its year-to-date breakeven on Friday. The equity has now muscled above its year-over-year breakeven, thanks to today's upside.

Despite its impressive price action on the charts, analysts have been relatively quiet on the car paint concern -- with the exception of BMO, which raised its target price to $34 from $32 last Friday. There's still plenty of room for bullish analysts to climb on board. While six in coverage call AXTA a "strong buy," the other five have doled out tepid "hold" ratings. What's more, the consensus 12-month target price of $31 is right in line with current levels. 

Traders may want to proceed with caution on AXTA, at least in the near term. The security sports a 14-day Relative Strength Index (RSI) of 81.7, which sits firmly in "overbought" territory. This suggests that a short-term breather may be in the cards. 

Hostess Brands Inc (NASDAQ:TWNK) is trading up 1.7% this morning at $14.13, following yet another bull note for the packaged food concern. UBS upgraded its opinion to "buy" from "hold" and lifted its price target to $17 from $14, representing the third positive analyst update this month for Hostess Brands. TWNK stock briefly topped $17 back in mid-2017, but hasn't topped the level since.

Looking closer, the shares are testing the $14 area, which is the site of a huge bear gap from last August. The equity topped the $14 level back in May after a well-received earnings release, but quickly pulled back. Still, the security sports a 27% year-to-date lead, while its 52-week high is $14.70. 

Coming into today, half the analysts in coverage still had "hold" recommendations on the stock, and the average 12-month price target was $14.88. Options activity has remained quiet, too, with just 81 combined calls and puts bought to open during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

One way TWNK could keep rallying is if short sellers begin to throw in the towel. Going by average daily trading volumes, the 17.92 million shares sold short represent more than 13 days' worth of buying power, pointing to huge potential for a short squeeze going forward.

Shares of donut and coffee chain Dunkin Brands Group Inc (NASDAQ:DNKN) are up 3% at $81.92  this morning, fresh off an out-of-the-gate record high of $83.22, after scoring an impressive bull note from Wedbush. Specifically, the analyst handed over an upgrade to "outperform" from "neutral," and hiked their price target on DNKN stock to $92 from $76. The brokerage firm said that Dunkin's same-store sales are at an inflection point, and are "underappreciated" by Wall Street.

Supporting Wedbush's claim is Dunkin stock's recent uphill climb on the charts. Less than two weeks ago -- on Wednesday, June 12 -- the shares touched a previous record high of $81.40. DNKN stock has added nearly 10% so far in June, following a bounce off its 80-day moving average. Year-to-date, the security has added 27%.

Analysts were heavily bearish toward the coffee stock coming into today, with 17 of 20 issuing a tepid "hold" rating. Further, the equity's average 12-month price target of $76.83 comes in slightly below current trading levels. As such, DNKN shares could score additional upgrades and price-target hikes.

Albeit amid low absolute volume, Dunkin puts have been preferred over calls lately. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DNKN sports a 10-day put/call volume ratio of 1.52, ranking in the 84th annual percentile. In other words, puts have been purchased over calls at a faster-than-usual clip in the past two weeks. An exodus of option bears could also be a boon for the donut stock.